Are Chinese banks' assets being wiped out?

Recently, over 20 Chinese banks released their annual reports for 2023. These annual reports indicate a continued increase in the banks' overall non-performing loan ratio. Analysts suggest that the biggest issue facing Chinese banks is the systematic depletion of their assets, with a financial crisis looming.
Six major banks have non-performing loans exceeding 200 billion yuan
The non-performing loan balance for real estate enterprise loans of six major state-owned banks in 2023 was 214.496 trillion yuan, an increase of about 16.7 trillion yuan from the previous year. The non-performing loan balance for individual home mortgage loans is 121.4 trillion yuan, an increase of about 4.9 trillion yuan from the previous year.